Craftsman Automation rises up to 4% on ₹1,200-crore QIP launch; floor price fixed at ₹4,426 per share

In a stock exchange notification, Craftsman Automation said that its Board Of Directors on Tuesday approved raising of funds by way of issuance of shares having face value of ₹5 each for an aggregate amount not exceeding ₹1,200 crore.

The floor price of the QIP has been fixed at ₹4,426.11 per share, which is over 7% lower than the stock’s previous close of ₹4,768.30 on Tuesday on the National Stock Exchange of India (NSE).

The company added that it may offer a discount of not more than 5% on the floor price calculated for the issue.

After the announcement, shares of Craftsman Automation gained as much as 3.7% to hit an intra-day high of ₹4,944.7 apiece on Wednesday on the NSE. The stock has jumped 12% in the past five trading sessions, but is down nearly 8% year-to-date in 2024.

Craftsman Automation is engaged in manufacturing parts for the automotive and industrial sectors. Earlier this year, the company had proposed a capex of about ₹500 crore for 2024-25.

A major part of the company’s capital expenditure is likely to be allocated towards completing two of its greenfield factories in Rajasthan and Tamil Nadu.

In the quarter ended March 2024, the company’s consolidated net profit dropped 12.1% on a year-on-year basis to ₹70.5 crore, while revenue increased 12.7% to ₹1,105 crore.